Honda Motor Company announced plans to invest US$ 3 billion to build a new auto plant in Ohio, US, to meet growing demand for hybrid vehicles in North America. The Japanese automaker confirmed that the new facility will increase its capacity in the US to 1.3 million vehicles per year and create 2,000 new jobs.
The new plant, to be built near the company’s existing manufacturing operations in Ohio, is scheduled to begin production in 2029. It is part of a broader investment programme covering Honda’s operations in the US states of Ohio, Alabama and Georgia, designed to “expand and strengthen an integrated US production network to boost production of hybrid-electric vehicles and the engines and hybrid systems that power them.”
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American Honda Motor Company’s executive vice president, Bob Nelson, said in a statement: “As Honda approaches 50 years of building products close to our customers in America, we are making one of the most significant commitments in our history to position Honda for the next 50 years. These investments strengthen America’s role as a cornerstone of Honda’s global future and reflect our confidence in our more than 30,000 Honda associates and the strength of American manufacturing. By expanding our comprehensive R&D and manufacturing capabilities, we will be better positioned to serve our customers and contribute to the economic vitality of the communities where we operate. ”
Honda said that these new investments “will establish the foundation for next-generation production capabilities and help meet growing customer demand for Honda and Acura products, including hybrid-electric vehicles and multiple new models currently under development by Honda R&D operations in the US.”
Earlier this year, Honda announced that it plans to introduce 15 new Honda and Acura hybrid models globally by 2030, with North America expected to be the primary market for many of these vehicles. The company’s planned investments in Ohio, Alabama, Georgia, and Canada, “will enable the production of these products in North America.”
Honda said that the new investments in Ohio and projects that are already underway at existing facilities in North America will create an integrated manufacturing network for future hybrid and gasoline-powered vehicles, connecting vehicle assembly with expanded engine and hybrid system production. These projects will increase Honda’s North American production capacity to approximately 1.9 million vehicles per year.
Key investment projects across the Honda manufacturing network in North America include:
All-New Ohio Plant
The new plant in Ohio will be Honda’s fourth vehicle assembly plant in the state and the company’s ninth in the US, and will help the automaker produce an expanding hybrid vehicle lineup. It will be built on land between the company’s existing East Liberty and Marysville Auto plants and will have an annual production capacity of 240,000 vehicles.
The new plant will be one of the most advanced assembly plants globally when it comes online in 2029, with leading-edge automation, data-driven technologies and flexible production systems to improve efficiency, quality and competitiveness. It will provide Honda with the flexibility to quickly adapt production to customer demand, market conditions, and evolving electrification trends.
Combined with expanded hybrid powertrain capabilities and close collaboration between Honda R&D and manufacturing teams, these investments will help strengthen Honda’s long-term competitiveness in North America.
Alabama Auto/Engine Plant
Honda is expanding its vehicle and engine production capacity in Alabama, including the addition of a new V6 hybrid engine. The investment will increase the flexibility to build multiple vehicle models on the company’s two vehicle production lines and strengthen the plant’s role in Honda’s future hybrid vehicle strategy.
Anna Engine Plant (AEP) in Ohio
Honda is undertaking major retooling at the Anna Engine Plant (AEP), the largest Honda engine plant in the world, to produce a next-generation 4-cylinder Atkinson-cycle engine for future compact and midsize vehicles built in North America. The company is also establishing a parts consolidation centre to support production.
Hybrid System Production in Ohio and Georgia
Honda has begun retooling its Honda Transmission Plant-Ohio (TMP-O) to support the production of two next-generation Honda hybrid systems, with the aim of increasing hybrid system production capacity by 250% in the next few years.
The Honda Transmission Plant-Georgia (TMP-G) will begin production of next-generation hybrid systems for large vehicles in the coming years. The facility currently makes 10-speed automatic transmissions for Honda and Acura models made in Alabama and Ohio.
Honda of Canada Manufacturing
Honda confirmed that it is updating and retooling its production operations in Alliston, Ontario, to support the production of next-generation hybrid-electric and gasoline-powered models, and that it will reintroduce an engine production line at the plant.
